3 Best Ways To Invest Your Money – Getting Outstanding Returns

The point of investment is to get a return on your capital within a given time frame. The shorter the time frame, the bigger the return, the bigger your compounding result will be each year. Investors focus on getting the biggest possible compounder each year with the least possible risk.

This factor risk defines the quality of an investment. A quality investment is of course an investment where you actually get back your seed capital as well as a percentage margin on top of that capital. So the best ways to invest money are ones where your risk is very low or nill.

There is no such thing as a nill risk investment, there is always some risk. Even the investment of putting your money in a bank has at least some small element of risk involved. This is considered by most investors as the safest investment of all because a bank is a certain kind of business that is actually backed and guaranteed by the government.

So a bank deposit is the best way to invest your money, if you have several million dollars. The single digit return makes it impractical as a source of passive income for investors with less than at least a million dollars because the returns are too small to live on. But for large capital accounts it is still the safest place to park money.

The next safest investment is real estate because unlike the stock market or mutual funds, your money leaves your hands but you receive something of tangible worth in exchange. This is a very significant thing, because if you compare it to the stock market, you receive nothing more than a receipt for an investment in shares. This receipt is an acknowledgment but it has no intrinsic value in and of itself. The actual paper document you receive has no value.

What this means is that the risk is out of your hands to control. You have passed on the money to someone else and the capacity to control risk is completely absent. Control and risk are very closely connected, so when that control is relinquished, then so the risk factor increases significantly.

The final best way to invest money is a variation on real estate, however it can be used even with small capital accounts. The entry costs of real estate are large, you need a deposit, you have legal costs and other associated expenses. However, you may also invest into investment objects that match your current level of seed capital. For example, you could quite easily buy common goods that are mis priced and sell them at a profit. This sort of transaction can happen as quickly as a week and the return can be quite high. This capacity to rapidly turn over an investment has powerful ramifications on a port folio. If you can buy something for $100 and sell it for $140 that is a 40% mark up, if you can do that in a week, you have quite an investment model if you can maintain those levels of compounding. $100 turns into a million dollars in only 28 such transaction.

It’s Time to Realize Huge Gains and Limit Your Losses While Investing Your Money Online

When it comes to investing your money online there are a few simple techniques that you can use to help limit your risk and give yourself great potential gain. This article will look at a couple of the simple investing strategies that you might try for your next stock investing venture online.

The first key essential is to always create a stop loss limit. This type of trade is either called a stop order or a stop loss order. Quite simply, it is putting in a future sell order of your stock at a price that you’re not willing to sell it for less than. However there is no guarantee that you won’t have to sell the stock slightly less.

Example: If there’s a big gap in the stock it will simply trigger the stock sale and then sell your holdings at the next available price.

A stop order is effective if there is terribly disturbing news about a certain stock that you hold, and you were not able to get your computer to get rid of the stock before it started to crash and burn. The stop loss order will automatically trigger the sale and minimize your losses.

Now nobody likes to think about a stock plunging when investing your money online unless of course you have bought the stock short – this means you’re anticipating the stock will lose money and you’re going to capitalize on this downturn.

Let’s assume that you buy a stock that you want to go up, though. One of the keys to making more profits is to set a goal as to where you’re willing to exit out of the stock rather than get greedy. The one time that you may want to consider holding is not for long term is that pays a reasonable dividend.

Investing your money online can be tricky however; using these few simple methods can limit your losses and give you a wonderful chance at a profitable portfolio.